BSE Midcap index hits new high led by auto, consumer discretionary stocks

The S&P BSE Midcap index hit a record high of 21,254.92, up 2 per cent on the BSE in the intra-day trade on Tuesday, on the back of a strong rally in automobile, consumer discretionary, financials and Adani Group stocks. The index surpassed its previous high of 21,085.51 touched on March 4, 2021 in the intra-day trade.

At 02:07 pm, the S&P BSE Midcap index was the top gainer among broader indices, up 1.7 per cent at 21,196.55 levels. In comparison, the S&P BSE Smallcap index was up 1.2 per cent and the benchmark S&P BSE Sensex was ruling 1.4 per cent higher, BSE data showed.

Jubilant FoodWorks, Indian Hotels Company and Page Industries from the consumer discretionary space; Ashok Leyland, TVS Motor Company and Bharat Forge from automobiles; AU Small Finance Bank, Muthoot Finance, Shriram Transport Finance Company and Federal Bank from financials; and Adani Transmission, Adani Power and Adani Green Energy from Adani Group were up between 3 per cent and 6 per cent on the BSE.

According to analysts, most of these stocks are surging on anticipation of improved demand that may play out post easing of travel restrictions and pick-up in vaccination drive carried out by the government. The declining daily Covid-19 caseload in the country has also boosted market sentiments.

"As domestic Covid cases fell below the 3 lakh mark for the second day in a row since mid-April, helped by the extended lockdowns by majority states, sentiments have turned buoyant. Hopes have accelerated that soon restrictions/curbs would be eased once cases decline further," said Hemang Jani, Head Equity Strategy, Broking & Distribution at Motilal Oswal Financial Services.

He added: Even the news flows around vaccination front is boosting confidence as more Pharma companies are tying up for vaccine manufacturing. Visibility on economic recovery front improves as industrial activities largely continued even during the lockdown and now. with restrictions likely to ease, consumer demand is expected to make a come-back. Thus, investors are heading more for mid-cap stocks as growing risk appetite and cheaper valuations of these companies compared to large-cap peers have revived their popularity.

Among other individual stocks from the BSE MidCap index, Gland Pharma surged 12 per cent to Rs 3,124.75 in the intra-day trade after the company reported a healthy 34 per cent year-on-year (YoY) rise in its consolidated net profit to Rs 260.4 crore in the March 2021 quarter (Q4FY21) on robust sales. It had posted net profit of Rs 194.8 crore in Q4FY20.

The company’s revenue from operations grew 40 per cent YoY at Rs 887.70 crore from Rs 635.2 crore in a year ago quarter. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) margin during the quarter under review declined to 40 per cent from 42 per cent in previous year quarter.

The management said the new product launches, volume growth in company’s existing portfolio, along with geographic expansion, has led to strong business growth across all markets. The new Vaccine business is expected to accelerate the company’s long-term strategy of entering into Biosimilar space, the management said.

Gland Pharma 3061.00 2792.85 9.60
Container Corpn. 605.75 567.30 6.78
Ashok Leyland 121.35 115.45 5.11
Jubilant Food. 2959.50 2816.50 5.08
Adani Power 101.85 97.00 5.00
Adani Transmissi 1260.60 1200.60 5.00
Adani Green 1199.65 1142.55 5.00
Info Edg.(India) 4450.00 4255.85 4.56
AU Small Finance 984.15 942.10 4.46
Supreme Inds. 2247.95 2160.65 4.04
Page Industries 29278.85 28191.40 3.86
Cummins India 836.20 805.55 3.80
Muthoot Finance 1264.55 1221.35 3.54
Indian Hotels Co 119.20 115.20 3.47
TVS Motor Co. 638.45 617.10 3.46
Shriram Trans. 1434.70 1389.00 3.29
Oberoi Realty 543.55 526.50 3.24
I R C T C 1820.00 1763.55 3.20
Federal Bank 84.10 81.65 3.00
Bharat Electron 152.40 148.10 2.90

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